Markets on June 1, 2009:

Buying activity during the final hour of trade further strengthened gains in the Indian
indices as they ended the day well above Friday’s closing levels. Sensex ended the day
higher by 215 points, while Nifty closed higher by 81 points. Stocks from the mid-cap
and small-cap spaces ended the day on a strong note as well, recording gains of 2.9% and
3.5% respectively. Barring select banking stocks, buying activity was witnessed in stocks
across sectors led by realty, metal and IT. Though the move in Nifty in does not seem to
be halting. Additionally this northward move is support by positive crossover of hourly
moving averages. On the other hand, hourly momentum oscillator has given a negative
crossover with negative divergence, which signifies that the current surge is losing the
strength. Probably in the coming session we may see some action in the southward
direction. Market breadth is positive with 997 advances and 268 declines.

Our short-term bias is down for the target of 3900 with reversal packed at 4510. However
our mid-term bias is up for the target of 4550 with reversal placed at 3700.

Barring select banking stocks, buying activity was witnessed in stocks across sectors led
by realty, metal and IT. From the 30 stocks of Sensex Tata Steel (up 8%), Sterlite
Industries (up 7%) and ACC (up 6%) led the pack of gainers, while ICICI bank (down
2%), BHEL (down 2%) and Bharti Airtel (down 2%) led the pack of losers.